Do I have to report vacant land that I just bought?

[rohanbiss]

I bought vacant land for investment purposes. The land is not being rented but I pay property taxes and related expenses. Do I have to report the acquisition in my US tax return?

[MargaretL]

No, you don't have to report the acquisition of land on your tax return; but you can deduct property tax paid on it and your loan interest:

Property tax data entry:

1. Federal Taxes
2. Deductions & Credits
3. Your Home
4. Property Taxes - enter property tax paid on land in Other Property field

You can also deduct interest on land that you purchased for investment. It is deductible as investment expenses limited to the investor's net investment income for the year. Any excess interest not deducted in the current year is carried over to future years. 

1. Federal Taxes
2. Deductions & Credits
3. Retirement and Investments
4. Select Investment Interest Expenses